Internal Revenue Code · 26 U.S.C.
§ 4218. Use by manufacturer or importer considered sale
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 4218
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- September 2, 1958 by Pub. L. 85–859
- Last amended
- July 18, 1984 by Pub. L. 98–369
- Amendments
- 6 dated changes in the source credit
- Length
- 3 subsections · 391 words · about 2 min to read
- Cross-references
- cites 3; cited by 1 Code section and 10 other regulations
- Regulations
- 5 issued under this section
If any person manufactures, produces, or imports an article (other than a tire taxable under section 4071) and uses it (otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him), then he shall be liable for tax under this chapter in the same manner as if such article were sold by him. This subsection shall not apply in the case of gasoline used by any person, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him. For the purpose of applying the first sentence of this subsection to coal taxable under section 4121, the words “(otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him)” shall be disregarded.
If any person manufactures, produces, or imports a tire taxable under section 4071, and sells it on or in connection with the sale of any article, or uses it, then he shall be liable for tax under this chapter in the same manner as if such article were sold by him.
Except as provided in section 4223(b), in any case in which a person is made liable for tax by the preceding provisions of this section, the tax (if based on the price for which the article is sold) shall be computed on the price at which such or similar articles are sold, in the ordinary course of trade, by manufacturers, producers, or importers, thereof, as determined by the Secretary.
(Aug. 16, 1954, ch. 736, 68A Stat. 494; Aug. 11, 1955, ch. 805, § 1(a), (b), 69 Stat. 689; Pub. L. 85–859, title I, § 118, Sept. 2, 1958, 72 Stat. 1281; Pub. L. 86–418, § 2(a), Apr. 8, 1960, 74 Stat. 38; Pub. L. 87–61, title II, § 205(b), June 29, 1961, 75 Stat. 126; Pub. L. 89–44, title II, § 208(c), June 21, 1965, 79 Stat. 141; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–227, § 2(b)(1), Feb. 10, 1978, 92 Stat. 11; Pub. L. 98–369, div. A, title VII, § 735(c)(7), July 18, 1984, 98 Stat. 983.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 4218
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 4071 Imposition of tax
- § 4121 Imposition of tax
- § 4223(b) Special rules relating to further manufacture
Cited by 1 Code section
Cited in 10 regulations not issued under it
- § 48.0-2 General definitions and attachment of tax.
- § 48.4064-1 Gas guzzler tax.
- § 48.4071-4 Original equipment tires on imported articles.
- § 48.4121-1 Imposition and rate of tax on coal.
- § 48.4161(a)-4 Use considered sale.
- § 48.4161(b)-3 Use considered sale.
- § 48.4191-1 Imposition and rate of tax.
- § 48.4223-1 Special rules relating to further manufacture.
- § 48.6416(b)(1)-2 Determination of price readjustments.
- § 48.6416(c)-1 Credit for tax paid on tires or, prior to January 1, 1984, inner tubes.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 98–369Parts changed in 1984: (a) (b) (c) (d) (e)
- Amended by Pub. L. 95–227Parts changed in 1978: (a)
- Amended by Pub. L. 94–455Parts changed in 1976: (e)
- Amended by Pub. L. 89–44Parts changed in 1965: (b) (c)
- Amended by Pub. L. 87–61Parts changed in 1961: (a)
- Amended by Pub. L. 86–418Parts changed in 1960: (a) (b) (d)
- Enacted by Pub. L. 85–859
Where it sits in the Code
- Subtitle D Miscellaneous Excise Taxes
- Chapter 32 MANUFACTURERS EXCISE TAXES
- Subchapter F Special Provisions Applicable to Manufacturers Tax
Nearby sections
- § 4216 Definition of price
- § 4217 Leases
- § 4218 Use by manufacturer or importer considered sale
- § 4219 Application of tax in case of sales by other than manufacturer or importer
- § 4220–4225 Repealed
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1984—Subsec. (a). Pub. L. 98–369, § 735(c)(7)(D), substituted “(other than a tire taxable under section 4071)” for “(other than an article specified in subsection (b), (c), or (d))”.
Subsec. (b). Pub. L. 98–369, § 735(c)(7)(A), (B), struck out “and tubes” after “Tires” in heading, and in text substituted “If” for “Except as provided in subsection (d), if”, and struck out “or inner tube” before “taxable under section 4071”.
Subsec. (c). Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c). Former subsec. (c), which related to automotive parts and accessories, was struck out.
Subsec. (d). Pub. L. 98–369, § 735(c)(7)(C), struck out subsec. (d) which related to bicycle tires and tubes.
Subsec. (e). Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c).
1978—Subsec. (a). Pub. L. 95–227 inserted provisions relating to applying first sentence of this subsection to coal taxable under section 4121 of this title.
1976—Subsec. (e). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
1965—Subsec. (b). Pub. L. 89–44, § 208(c)(1), (2), struck out references to automobile receiving sets from heading, and “or an automobile radio or television receiving set taxable under section 4141,” before “and sells it”.
Subsec. (c). Pub. L. 89–44, § 208(c)(3), (4), struck out reference to radio components and camera lenses from heading, and “a radio or television component taxable under section 4141, or a camera lens taxable under section 4171,” before “and uses it”.
1961—Subsec. (a). Pub. L. 87–61 inserted sentence making subsection inapplicable in the case of gasoline used by any person, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him.
1960—Subsec. (a). Pub. L. 86–418, § 2(a)(1), substituted “subsection (b), (c), or (d)” for “subsection (b) or (c)”.
Subsec. (b). Pub. L. 86–418, § 2(a)(2), substituted “Except as provided in subsection (d), if any” for “If any.”
Subsecs. (d), (e). Pub. L. 86–418, § 2(a)(3), added subsec. (d) and redesignated former subsec. (d) as (e).
1958—Pub. L. 85–859 amended section generally, striking out provisions which related to refrigerator components and to sales free of tax by virtue of section 4220 or 4224 of this title, and substituting provisions making manufacturers, producers and importers of parts or accessories taxable under section 4061(b), radio or television components taxable under section 4141, or camera lenses taxable under section 4171 liable for the tax if they use the parts or accessories otherwise than as material in the manufacture or production of, or as component parts of, any other article to be manufactured or produced by them, for provisions which made section inapplicable with respect to such parts if they were used by them as material in the manufacture or production of, or as a component part of, any article.
1955—Subsec. (a)(1). Act Aug. 11, 1955, § 1(a), inserted as tax exempt articles under this chapter, automobile parts or accessories, refrigerator, radio, or television components, or camera lenses taxable under section 4061(b), 4111, or 4171, respectively, of this title.
Subsec. (b). Act Aug. 11, 1955, § 1(b), excepted from application of section automobile parts or accessories, refrigerator, radio, or television components, and camera lenses, taxable under sections 4061(b), 4111, 4141, and 4171, respectively, of this title, when for use by the purchaser in the manufacture or production of, or as a component part of, any article.
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 effective, except as otherwise provided, as if included in the provisions of the Highway Revenue Act of 1982, title V of Pub. L. 97–424, to which such amendment relates, see section 736 of Pub. L. 98–369, set out as a note under section 4051 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–227 applicable with respect to sales after Mar. 31, 1978, see section 2(d) of Pub. L. 95–227, set out as an Effective Date note under section 4121 of this title.
Effective Date of 1965 Amendment
Amendment by Pub. L. 89–44 applicable with respect to articles sold on or after June 22, 1965, except insofar as such amendments related to the taxes imposed by sections 4061(b), 4091, and 4131 and, as to such taxes, applicable with respect to articles sold on or after January 1, 1966, see section 701(a) of Pub. L. 89–44, set out as a note under section 4161 of this title.
Effective Date of 1961 Amendment
Amendment by Pub. L. 87–61 applicable only in the case of gasoline used on or after October 1, 1961, see section 208 of Pub. L. 87–61, set out as a note under section 4041 of this title.
Effective Date of 1960 Amendment
Amendment by Pub. L. 86–418 applicable only with respect to bicycle tires and tubes sold by the manufacturer, producer, or importer thereof on or after the first day of the first month which begins more than 10 days after April 8, 1960, see section 4 of Pub. L. 86–418, set out as a note under section 4221 of this title.
Effective Date of 1958 Amendment
Amendment by Pub. L. 85–859 effective on first day of first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1 (c) of Pub. L. 85–859, Sept. 2, 1958, 72 Stat. 1275.
Effective Date of 1955 Amendment
Amendment by act Aug. 11, 1955, effective on first day of first month which begins more than ten days after Aug. 11, 1955, see section 3 of act Aug. 11, 1955, set out as a note under section 6416 of this title.